Date: 03 Oct 1999
Time: 09:34:59
Remote Name: 24.30.157.175
08:57 a.m. Oct 02, 1999 Eastern
By Mehrdad Balali
TEHRAN, Oct 2 (Reuters) - Iranian President Mohammad Khatami vowed on Saturday to heal the country's ``ailing'' economy by speeding up market reforms and striving for political detente with other countries, especially those in the region.
``We want to create a safe atmosphere for economic activities, especially for the private sector and for foreign investment and production,'' he said in a speech inaugurating the annual Tehran International Trade Fair.
``Our aim is to make the government smaller and develop the private sector, to remove obstacles in the way of investment,'' he added.
``To achieve progress and development, we must cure two historically choronic illnesses: the ill economy and the ill management in the country.''
Khatami said his government was aiming for an average annual growth rate of six percent during the 2000-2005 development plan, to be debated soon by parliament.
Iran's economy achieved little growth last year but, with the recent rise in oil prices, it was expected to rebound to two percent in the current Iranian year, ending on March 19.
The president said ``a giant leap'' in non-oil exports made up the centrepiece of his economic recovery programme.
``We are hoping to earn $41 billion dollars from the exports of non-oil goods and services during the next plan. To achieve this, we will remove legal and administrative barriers in the way of exports,'' he said.
Iran's non-oil exports are still suffering from tough regulations imposed by the previous government in 1995 as part of attempts to check the flight of hard currency.
Last year, non-oil exports reached $3 billion, nearly half of what the country had earlier expected to earn. But they rose by 31.5 percent in the first five months of this year.
The government plans to increase non-oil exports by 18 percent annually to $8.6 billion by 2005.
Kahtami said he hoped improved relations with the outside world would help his country's economic future.
``Our fundamental policy is to rid the world of tension, to have good relations with all countries, mainly those in the region,'' he said.
``We are aiming for a safe atmosphere, for a just peace based on rationality. This trend has placed us in a secure position to achieve lasting and multi-faceted economic growth.''
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